Though the money-transfer business is healthy, uncertain debt markets will likely keep shares from outperforming the market, writes Avondale Partners.

WE ARE INITIATING COVERAGE of MoneyGram International with a Market Underperform rating. While shares have come under considerable pressure and the core money-transfer business is not at the root of the issue, we believe that given the uncertainty surrounding the debt markets, the recapitalization of the company, and public investors effectively becoming minority shareholders that there is not meaningful catalyst as to why shares should...